Double-dip threat 'could pose risk for business accounts'

Double-dip threat 'could pose risk for business accounts'
Date of Publication: Monday, 29 March 2010 00:00

The insolvency group R3 has discovered that 25 per cent of businesses are worried about the state of their UK accounts if the country experiences a double-dip downturn.

More than a quarter of the UK's small business account holders could become insolvent in the event of a double-dip recession.

That is according to figures published by the insolvency group R3, which revealed that small firms are not confident of being able to continue operating from their business bank accounts if the economic recovery reverses.

However, those businesses working in the manufacturing industry were found to have the best accounts - with just 19 per cent worried about their finances if gross domestic product growth becomes negative again.

Peter Sargent, president of R3, believes that the results of the research are "to be expected".

He said: "Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out."

Last week, the Confederation of British Industry claimed that chancellor Alistair Darling's Budget could provide a significant boost to small firms.

By Emma NorthADNFCR-2079-ID-19693777-ADNFCR
Monday, 29 March 2010 00:00
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